On Jan. 31, ubiquitous coffee purveyor Starbucks (NASDAQ:SBUX) released first-quarter earnings for the period ended Dec. 31.

  • Company-operated retail revenues rose 23% to $2.3 billion, primarily because of the opening of 1,177 new stores in the past 12 months.
  • Comparable-store sales also grew 6% during the quarter.
  • Net profit increased by 17.7% because of higher sales, which were partially offset by rising operating expenses.

(Figures in millions, except per-share data)

Income Statement Highlights

Q1 2007

Q1 2006

Change

Sales

$2,355.7

$1,934.1

21.8%

Net Profit

$205.0

$174.2

17.7%

EPS

$0.26

$0.22

18.2%

Diluted Shares

782.8

792.9

(1.3%)

Get back to basics with a look at the income statement.

Margin Checkup

Q1 2007

Q1 2006

Change*

Gross Margin

58.2%

59.8%

(1.6)

Operating Margin

13.6%

14.5%

(0.9)

Net Margin

8.7%

9.0%

(0.3)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q1 2007

Q1 2006

Change

Cash + ST Invest.

$436.5

$538.5

(19.0%)

Accounts Rec.

$227.8

$197.8

15.2%

Inventory

$547.3

$452.7

20.9%

Liabilities

Q1 2007

Q1 2006

Change

Accounts Payable

$275.7

$208.6

32.2%

Long-Term Debt

$1.7

$2.7

(34.9%)



Learn the ways of the balance sheet.

Cash Flow Highlights

YTD 2007

YTD 2006

Change

Cash From Ops.

$569.1

$608.9

(6.5%)

Capital Expenditures

$161.3

$147.3

9.5%

Free Cash Flow

$407.9

$461.5

(11.6%)

Find out why Fools always follow the money.

Related Companies:

  • Caribou Coffee (NASDAQ:CBOU)
  • Diedrich Coffee (NASDAQ:DDRX)
  • Green Mountain Coffee (NASDAQ:GMCR)
  • Peet's Coffee (NASDAQ:PEET)
  • Tim Hortons (NYSE:THI)

Related Foolishness:

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